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1. Mark and Mary are a married couple who will file a joint return in 2022.  They have $300,000 in Box 1 wages and $95,000 in long term capital gains income.  Assuming they use the standard deduction, what is their tax on Line 16 of the 1040 form?

2 Jones has three capital transactions during the current year.

Short-term capital gain of $4,200

Short-term capital loss of $3,300

Long-term capital loss of $500

What is the net effect on his taxable income?

1. Jeff dies leaving Sandy stock of CC Company. Jeff had acquired the stock in November of this year and died December 6th of this year. The value of the stock on the date of death was $100 and Jeff’s adjusted taxable basis was $30. Presuming that Sandy sells the stock for $60 on February 26th of the next year, what is her tax consequence?

Group of answer choices

1. If Sandy sells the stock for $60, she will have a long-term capital loss.

1. If Sandy sells the stock for $60, she will have a long-term capital gain.

1. If Sandy sells the stock for $60, she will have a short-term capital gain.

1. If Sandy sells the stock for $60, she will have a short-term capital loss.

1. Sue spent $4,500 in day care services for her two children (ages 3, and 5)  to allow her to go to work. If her adjusted gross income is $40,000, how much is her dependent care credit in 2022?

5 During 2022, Mark paid the following amounts:

• Federal income tax withheld- $6,000

• State income tax - $7,000

• Real estate taxes on his home - $1,500

• State sales taxes - $4,100

• State license fee - $900.

What amount can he deduct as taxes by itemizing his deductions (Schedule A, line 17)? Enter as number

1. Liam, age 40, is an active participant in his employer’s defined benefit retirement plan, but he would also like to make a deductible contribution to a traditional IRA this year. He is married, files a joint return with his wife, and they have an AGI of $121,000 in 2022. What is the traditional IRA contribution reduction amount for Liam? Enter as a number.

1. Giselle became an AMT taxpayer last year. As a result, she had to add several items to her taxable income in arriving at alternative minimum taxable income. Which of the following items will result in an AMT credit that can be used to offset future regular tax liability?

Group of answer choices

1. $5,000 in property taxes paid on her principal residence.

2. $4,000 in additional medical expenses.

3. $75,000 difference between the fair market value of stock and the strike price in the incentive stock option used to purchase the stock.

4. $4,000 in interest on private activity municipal bonds.

1. Jack has a 30 percent interest in a general partnership for which he paid $40,000. The partnership loss for 2022 is $200,000. How much can Jack deduct in 2022? Enter a number.

1. Ann is 17 years old and is claimed as a dependent by her parents. She earned $2,500 in wages and $2,000 in interest income during 2022. What is Ann’s basic standard deduction for 2022?

1. In 2022, Jessie had Box 1 wages of $60,000, interest income from a bank account of $6,000, a state income tax refund of $800, and inherited stock, which her mother had purchased in 2000 for $15,000, and was worth $80,000 at the date of her mother’s death on July 1, 2022. She immediately sold the stock for $80,000. Assume she had no other income, and no adjustments to gross income. Assume she did not itemize for her federal income tax return in 2021.

What is her Adjusted Gross Income in 2022?

1. Frank is 50 years old and works as an engineer for a private company. The following items are for 2022. He had out of pocket medical expenses (not covered by insurance) of $18,000. He had $7,500 withheld for state income taxes and $2,000 for local income taxes. He paid $3,500 in real estate taxes. He had home mortgage interest of $9,000 for a mortgage used to purchase in personal residence. He made charitable contributions of $11,000. His Adjusted Gross Income was $100,000. What is the total of his itemized deductions?

1. Mary is 55 and single with no dependents. On October 1, 2022, she sold ABC stock for $10,000, originally purchased 10 years ago for $24,000. She had no other capital gains or losses. Her only other income in 2022 is a salary of $75,000 (Box 1 wage on W2 form). What is Line 9, Total Income?

1. Ethan is starting a new business with his best friend, Max. They would like to have limited liability, but they would prefer flow-through taxation because they expect to have losses in the first few years. They are not concerned about incurring self-employment taxes. Which of the following entities would best suit Ethan and Max’s needs?

Group of answer choices

1. Proprietorship.

2. LLC.

3. C corporation.

4. Partnership.

1. Hank has a taxable income of $600,000 and is concerned about being subject to alternative minimum tax (AMT). The items below were included in the calculation of his taxable income. Which one of the following deductions will adjust regular income in calculating AMT?

Group of answer choices

1. A casualty loss deduction.

2. Qualified residence interest deduction.

3. A gift to a hospital.

4. Payment of state income tax.

1. Which of the following is not an ordinary income asset?

Group of answer choices

1. Depreciable property or real property used in a trade or business.

2. Literary compositions in the hands of the author.

3. Notes receivable from a trade or business.

4. Stock in trade held for sale to customers in the ordinary course of business.